Inflation: The money supply is on a surge

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ZYTrade Editor: The US dollar was officially created in 1792. Almost a quarter of all dollars in existence was created in the last few months due to COVID-19. Think about that for a moment. What does it mean?

One more time – Almost a quarter of ALL dollars in existence was created in the last few months. Think we’ve seen inflation yet? Just wait.

Thanks to John Gault for sending this in.

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inflation

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5 responses to “Inflation: The money supply is on a surge”

December 8, 2021

JohnP

John, I just hope we don’t get to where Venezuela is.

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December 8, 2021

Izzy

Woo that’s mad and pretty darn scary

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December 9, 2021

ralph k

Perhaps we should all learn to speak Spanish, for a multitude of reasons. All of the regimes actions are deliberate to destroy our way of life. They do not care at all about anyone or anything except themselves. I firmly believe at some point in the not too distant future, the ‘elite’ will not be able to ever come out into the public space for fear of retribution. It is coming to a theatre near you. It will be at least one aspect of the future I will look forward to.

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December 9, 2021

JayR

Might want to read the footnote on the FRED website explaining a classification change in May 2020 to begin including in M1 other liquid bank accounts such as savings and money market accounts. Before then they were excluded.

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December 9, 2021

goinggray58

Sooooo … So far, and for a long time SDR has the default reserve currency set as USD all over the world. Currency arbitrage is based on the stability of the USD. What prevents it from being horrible now, is the momentum established over the last 100 years. Not being remedial, but expanding the money supply (printed plus digital) doesn’t inflate a currency. The perceived value of the ability to pay is debt does.
“Can each Dollar be paid and in the same value of goods (consumables/oil etc) and gold as previous. Logically the answer is no. How can it since there many more available dollars, for the same amount of resources. That is logic, but not practice. Remember that a dollar isn’t a value intrinsically, it’s a certificate of debt just like a check. The difference is the guarantor of a check is the individual initially, secondarily the government. A dollar is guaranteed by the FED. So if the USD fails your STUFF now costs more digits in your check for the same amount STUFF. Side note.. One reason barter works locally is you trade like value for like value… Currency is there because it’s hard to carry around enough wheat or fish to back a transaction, and find a local consumer.
The idea of value is fiat at best and always has been, just like stock values .. it’s someone’s idea of perceived value, that the majority accepts that sets value of goods for dollars and the how the value compares to any other countries currency by comparison. (call it a shell game with infinite shells and infinite type of peas). You see USD value change first in exchange rates and the willingness of other countries to purchase USA FED backed Bonds. Again the US’s ability to pay in like value. Once anyone the majority respects, calls BS and says the US will default on it’s debt… the currency house of cards begins to devalue and can be quickly .. First indicators are majority moving money to assets as investment protection, vs stock, and currency arbitrage, until it settles. Real stuff vs digital perception of value. When no one buys US debt .. the USD collapses.. and you get some version of Venezuela. Since it is all fiat.. policy makes the call.. politics makes the plea to support or abandon, media builds the opinion of the mob in this case, and the change is gradual and orderly, a panic or something in between.
We of course are NOT in charge.. the longer the wait the greater the correction, like moving further out on the limb you are sawing off the tree. Watch for the transfer of wealth out of speculative investment (0’s and 1’s) and into assets. If, and when it fails, anything in banks, private retirement programs, or govt back subsidies of any kind can deny access, reduce value or disappear altogether. (why they want a digital currency .. control).
The current administration has been in the business of snuggling up to China, Russia, and whomever can support the failing dollar.. In short we are for sale, whole or in part. Feel free to have a difference of opinion of course. We prepare so we can survive and protect our resources for some timeframe that will allow things to settle down into another “normal” .. whatever that will be. What is most uncertain is when and for how long IMO.
Random thoughts
GG58

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